The organization that I have chosen to analyze the benefits plan is Delta Design. Delta Design is a Cohu Inc. organization. “Cohu is a leading supplier of test handling, burn-in and thermal solutions used by the global semiconductor industry, microwave communications and closed-circuit television equipment. In 1972, the name Cohu Electronics, Inc. was changed to Cohu, Inc. ” (Cohu, 2008). Cohu Inc. is comprised of five major organizations. These organizations are Delta Design, Rasco, BMS, Ismeca, and Cohu Electronics. Cohu Inc. is headquartered in Poway CA.
Delta Design has major offices located throughout the world including California, Philippines, and Singapore. Benefits Program Delta Design has many different benefits included in their plan as you can see in the below table. These benefits are the standard for the semi-conductor manufacturing industry. There are a few issues with the way that the benefits are disbursed. One major issue that they have is that the Education Re-imbursement plan has too many unneeded levels. Another issue with their plan is in the Paid Holiday plan.
Delta Design – Benefits| Medical| Dental| Vision|
Flex Spending Accounts| Employee Assistance Program| 401k Retirement Plan| Employee Discounts| Education Reimbursement| Paid Holidays| Vacation & Sick Leave| Bereavement| Bicycle Benefits| Long Term Disability| Short Term Disability| Life Insurance| Accidental Death and Dismemberment| Health and Wellness Plan| Employee Stock Purchase Plan| The 401k Plan is matched at 50% of the first 3% that is contributed by the employee. This plan is administered through The Principal. Employees are eligible within the first month of hire. The Employee Stock Purchase Plan allows employees to contribute up to 10% of their pay.
This is done every six months and at a 15% discounted price. The Healthcare Benefits Plan includes medical, dental, and vision. The carrier for the medical and dental is Aetna, while the vision is through VSP. Employee can cover themselves as well as their spouse and children up to 26 years of age. This plan also includes the Flex Spending Account. This account allows the employee to use pre-tax contributions to help with healthcare and dependent care. The Holiday and Time-off Plan provides 15 days of vacation for new hire salary employees and 10 days for hourly new hires.
This plan also includes 10 paid holidays. The Employee Assistance Plan offers the employees free counseling through Horizon Health. This covers many types of counseling including psychological, stress, and substance abuse. The Tuition Reimbursement Plan covers the cost of books, tuition, and registration up to $3000 per calendar year. The amount of reimbursement is dependent on the grade received. All other benefits are the amount that the law states. Statement of the Issue Basic Issue One of the main problems with the Delta Design benefit plan is the complicated Tuition Reimbursement program.
This program has levels that make it hard to know just how much money will be reimbursed. The levels are dependent on the grade received. If the employee gets an “A”, they will get 100% percent of the tuition paid. If they get a “B” or “C”, they will receive 75%. The reimbursement also has a annual cap of $3,000. The second issue that the benefits plan has is in the paid holiday plan. Each year the paid holiday change due to the days of the week. If a normal holiday falls on a weekend day, the holiday is not a paid holiday for that year. They make adjustments to which holidays are off.
These issues cause the main problem at Delta Design, low retention rates. People always get a little experience and then move on to better opportunities. Purpose The purpose of the paper is to inform the HR department of the issues within the benefits plan. The following writings will give details as to what the issues are and how to fix them. Relationships For the tuition reimbursement issue, there are some minor issues that could be addressed. The first minor issue is that there is too much calculation that needs to be done. Having to figure out how much to pay depending on the grades takes time and money.
The HR department needs to dedicate one individual to process all the company’s tuition reimbursements. This could be easy with small changes to the program. For the paid holiday issue, the minor issue is the ever changing days off from year to year. It would be easy to fix this issue by making it standard. Having off on President’s Day one year and not the next just does not make sense. Both of these issues cause low retention rates for a company. If you can’t keep employees, you will never be really productive. Literature Review Academic Resources and Relationships Firms cite increased retention as a motivation for offering tuition reimbursement programs” (Flaherty, 2007). This source tells us that if a company offers tuition reimbursement, the turnover rate will be decreased. That tells us that the more that a company offers, the more employees will stay with that company. “Not only is the average number of paid days off far lower in the United States than in the rest of the industrial world, many workers don’t get any paid days off” (Jorgensen, 2009). This source shows that The United States is already low in the paid holiday numbers.
Increasing the number of paid holidays to a level that is better than most organizations in the U. S. will make your company a high sought after business to work for and turnover rate will become lower. “Voluntary turnover increases when individuals earn graduate degrees but is significantly reduced if they are subsequently promoted” (Benson, 2004). This state take the likelihood of an employee leaving after school goes directly in hand with the position that they hold. If they feel that their degree is being used and is not being wasted by the current organization, they are likely to stay.
The key to making sure that the reimbursement plan is helping your business is to make sure that you only offer it for degrees that can be used at your organization. Issue Analysis Analysis As you can see from the above literature review, changes to the plans will make great strides in lowering the retention rate. With the proper solutions being put into place, the minimum changes will change the whole outlook of the employees and potential employees. Issue Solutions Logical Solution After looking at the analysis, the fix for the tuition reimbursement would be to pay the same amount for any passing grade.
I would recommend also increasing the annual amount that is giving out. I say to do this because the more you pay, the more people will take advantage of the plan. Having the majority of your employees going to school to better their education can only help the organization. The analysis of the second issue tell me that all federal holidays should be paid days off. Adding to the number of holidays off will increase the amount of candidates that want to work for your company as well as fix any turnover issues that may be there. Pros and Cons
For the tuition reimbursement solution, the pros would be that your employees will be well educated as well as satisfied with the organization as a whole. I think that most people that get money to go to school will take advantage of the situation to take classes to make their current job easier. If they can accomplish their job with less work, they will be able to get more done. The more that people use the program the higher the productivity increases. A con for this change would be that you may pay someone to get an education and then they leave to a new job.
This money would be a loss due to the fact that you don’t get to reap the benefits of the smarter and more productive employee. For the paid holiday solution, the pros would be that the employees will know year to year what days they will be paid. If the holidays are set, employees can make plans around them way in advance and this would allow the employer to plan for people taking off. A con for this would be that the organization will be paying more out for holidays each year. Solution and its Implementation (4) Addressed Problems and Solutions The problem was adequately addressed; sufficient detail provided in solution Plan & Measurement
Sufficient detail provided in solution; identifies how success will be measured Justification (2) Pros and Cons Recognizes pros and cons from solutions Conclusions Conclusions adequately supported Course Materials Course material applied appropriately Reflection (1) Reflection Statement Reflection statement is substantive and detailed: your thoughts on the project overall, actions taken, choices made over the course of the project, what learning and growth has occurred, our thoughts on the role of project like this in developing professional understanding and competency.
Cite this Delta Design: Analysis of Benefits Plan
Delta Design: Analysis of Benefits Plan. (2016, Oct 23). Retrieved from https://graduateway.com/benefits-plan/